KUALA LUMPUR – Bursa Malaysia Derivatives Berhad today successfully launched its highly anticipated After-Hours (T+1) Night Trading Session (After-Hours Trading). The availability of After-Hours Trading will enhance the competitiveness and attractiveness of the Exchange’s products and the overall Malaysian derivatives market among local and international investors.
Available for its commodity and equity index derivatives contracts, After-Hours Trading is expected to bode well for Malaysia’s derivatives market with the clear benefits it offers.
With its improved price discovery, After-Hours Trading can be used as a hedging and risk management tool, allowing investors to manage their risk exposure to price fluctuations in response to any major market movement that occurs during the US and European market hours.
“More recently, the Exchange’s trading volume for FCPO in the third quarter of this year recorded a positive growth momentum with a total of 11.8 million contracts, an increase from 10.8 million in the same period last year,” said Samuel Ho, Chief Executive Officer of Bursa Malaysia Derivatives.
“After-Hours Trading is important for hedging in the highly volatile crude palm oil market. Market participants will now have an avenue to better manage their risk exposure based on real-time global developments.”
The After-Hours Trading offered by Bursa Malaysia Derivatives is an extension of the Exchange’s current market trading hours in line with global market practices. Market participants will now be able to trade between 9.00 p.m. to 11.30 p.m. from Monday to Thursday, thereby closing the gap between local and foreign market trading hours.
As a result, After-Hours Trading will not only create new trading opportunities, but it will also draw in greater international participation.
“By strengthening the connection between the Malaysian derivatives market and the global markets, the price discovery and effectiveness of our products as risk management solutions will be improved, hence enticing global investors to trade in our market,” added Samuel.